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BSP Approves Further Amendments to FX Regulations

07.05.2013

BSP Governor Amando M. Tetangco, Jr. announced today that as part of continuing efforts to promote an appropriate regulatory framework for foreign exchange (FX) transactions, the Monetary Board has  approved further amendments to the Manual of Regulations on Foreign Exchange Transactions (FX Manual).  

The amendments involve the following:

a.  Allowing registration by custodian banks of non-resident investments in PSE-listed equity securities of non-residents.  

b.  Allowing with prior BSP approval, the conversion to FX by non-resident issuers of the peso proceeds from the onshore sale of their PSE-listed equity securities.
 
These measures will broaden investment options available in the domestic capital market and allow freer capital mobility.

c. Allowing prepayment of BSP-registered short-term (ST) loans, subject to standard documentary requirements for FX purchases.

This will facilitate access to the banking system for legitimate transactions requiring payment in FX.

d. Waiver of the submission by banks of documents to support reports on importations under documents against acceptance (DA) and open account (OA) arrangement, provided banks maintain adequate records for BSP verification.

The measure will simplify and reduce reporting burden on banks.

Certain clarifications to the FX Manual have likewise been made for greater clarity of rules and better understanding by the general public, the Governor continued. The implementing circular for these will be issued shortly. 

The Governor affirmed the BSP’s commitment to maintaining a safe and sound financial system, a stable FX market, and monetary policy supportive of economic growth.

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